Failure to keep to Premium charge terms

[Euler]

In Betfair's T&C's they say the following: -

If your rate has increased, Betfair will notify you directly and give you at least two weeks’ notice before the increased rate takes effect. You are entitled to seek review of your Premium Charge rate at any time.

Two weeks ago I tipped over the threshold by 0.0049% but went back over almost straight away. But this week they have immediately moved me back up to a higher rate without warning. Waiting to see if I get debited tomorrow and if they take corrective action.

Just to let others know.

[andyfuller]

Interesting that you are managing to stay at 40% Normally Peter, does it take a lot of effort to keep below 60%? I would guess you use a lot of automation to help?

[Euler]

I tend to use Betdaq to help lower / raise my commission generated. There are quite a surprising number of arbs available between the two and if not, trading on both for a gross net zero generates a lot of commission at no cost.

I think it's a flaw in the premium charge in that it actually generates activity on other exchanges. I've gone from nothing in 2008 to what will be tens of millions this year on Betdaq. If the premium charge didn't exist then I wouldn't have done a penny on Betdaq. I've gathered a lot of momentum on their now. I reckon you will see the markets grow faster than Betfair this year.

[hgodden]

That's quite alarming. I imagine they will take corrective action - they'd be pretty stupid to contravene their own rules like that, it's almost like they're asking someone to take them to court

[Euler]

Looks like an error so no charge this week. Hopefully the statement will revert to normal next week.

[hgodden]

Did this work out OK in the end Peter?

[Euler]

No charge last week, but no PC statement this week. So currently awaiting to see if it's been adjusted correctly this week.

[Euler]

Just checked again and it's on the site, so all resolved now.

[hgodden]

Good stuff

[gazuty]

I tend to use Betdaq to help lower / raise my commission generated. There are quite a surprising number of arbs available between the two and if not, trading on both for a gross net zero generates a lot of commission at no cost.

I think it's a flaw in the premium charge in that it actually generates activity on other exchanges. I've gone from nothing in 2008 to what will be tens of millions this year on Betdaq. If the premium charge didn't exist then I wouldn't have done a penny on Betdaq. I've gathered a lot of momentum on their now. I reckon you will see the markets grow faster than Betfair this year.

All part of the law of unintended consequences. A business takes action thinking it knows what the result of its action will be. But human nature is unpredictable and not always rational.

[gampas]

There are many examples of Betfair not keeping to the Ts and Cs.

In 2008 Betfair introduced a Premium Charge for successful customers which began at 20% of the profit over the previous 60 weeks and became as high as 60% for those with more than £250k total profit. In the week after it was introduced, the charge was calculated on the winnings of the customer in the previous 60 weeks and applied to the account as a Premium Charge. Legal opinion is that the Premium Charge was, and still is, retrospective, and therefore illegal, but there is a time limit on claiming which expires on 1st September 2014. To register your claim, send an email to [email protected], stating the amount you have paid in Premium Charges in total. I am not charging a penny for collecting clients for a group action, but you should realise that litigation may cause Betfair to close your account.